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INTRODUCTION
The most recent non-proprietary video compression standard, High-Efficiency Video Codec (HEVC), also
known as H.265, was placed into final draft for ratification in January 2013 and is expected to become the
video standard of choice for the next decade. As with each generation of video compression technology
before it, HEVC promises to reduce the overall cost of delivering and storing video assets while
maintaining or increasing the quality of experience for the viewer.
HEVC is an open standard, defined by standardization organizations in the telecommunications (ITU-Ts
VCEG) and technology industries (ISO/IEC MPEG) to leverage the most efficient video compression
techniques using the market’s latest processing platforms. Without sacrificing video quality, HEVC can
reduce the size of a video file or bit stream by as much as 50% compared to AVC/H.264 or as much as
75% compared to MPEG-2 standards. This results in reduced video storage and transmission costs and
also paves the way for higher definition content to be delivered for consumer consumption.
The techniques and algorithms used in HEVC are significantly more complex than those of H.264 and
MPEG-2. There are more decisions to make when encoding a given video stream or file and as a result,
more calculations need to be made in compressing video assets. This complexity, however, is an
excellent fit for video processing solutions that seamlessly evolve from one compression generation to the
next as they mitigate the risks that come with any large technological migration.
This paper focuses on the technical and market implications of HEVC’s adoption in the content creation
and delivery market. It is assumed that in the 1-2 years following ratification of the standard, the vast
majority of consumer electronics manufacturers will support hardware-based decoding of HEVC in their
devices.
VIDEO COMPRESSION BASICS
Video compression seeks to reduce or remove redundant information from a video stream so that the
asset can be stored or sent over a network as efficiently as possible. The algorithms used to eliminate the
excess information make up the process of encoding, and the amount of time it takes to accomplish this
task is termed “encoding latency,” especially in a linear workflow such as live television delivery. The
method used to play back the compressed asset and return it as closely as possible to its original state is
known as decoding. Together, the interoperability of the compression and decompression processes form
the basis of a codec.
The differences between codecs stem from the techniques each uses to reduce the amount of
information in a video bit stream. MPEG-2 achieves different bit rates and quality levels than H.264 and
the same is true of HEVC. However, within a given codec standard, the decoder algorithms are firmly
defined—in fact, the scope of the standard is generally based around the decoder. In order to achieve
interoperability and decode what is known as a “compliant bit stream,” this decoder recipe must be
followed.
FIGURE 1: SCOPE OF VIDEO COMPRESSION STANDARDIZATION
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